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How is student property different to mainstream options for buy to let investment?

Student property has emerged as a popular buy to let investment

Student property has had something of a meteoric rise to the top in terms of the property market in recent years. After having been seen as something of a niche asset class for decades, the emergence of higher student numbers in the UK, and the continued climbing of this metric over the last five or six years means that student accommodation has become a hot ticket.

In just three years, the market saw investment levels top £11 billion, as it followed up hitting £5.7 billion in one year (2015) for the first time by doing the same in both 2015 and 2016. Since 2014, cities such as Leeds, Liverpool, Manchester and Birmingham have seen an increasing need for student properties in the private sector as university stock levels proved too low to meet demand.

And this is something that is likely to continue for some time. UCAS figures show that there have been increases in student numbers ever since 2011, even with tuition fees being introduced, and the shock Brexit vote last year. This means that there’s likely to be space for even more investment from newcomers to the market for some time.

So, why should you invest in student property, and what makes it so different to the traditional property mainstream?

1.You can avoid the void

Void periods are a landlord’s worst nightmare, no matter what type of property they are dealing with. But when it comes to student property, it’s easier to forecast the way a year will go and budget accordingly.

While in a mainstream rental property, a tenant could leave at any time of the year, leaving you scrambling for a replacement, in student property this is rarely the case, with the typical student instead likely to remain in place from September to early summer each year. This makes it easier to plan and budget, and far more steady and predictable.

2. You can secure higher yields

Whether new build or existing, student property tends to bring in far higher yields for landlords than mainstream property assets have to offer. The relatively low cost of getting stock in the first place, coupled with perpetually high demand, means it’s easy to get a strong return rate when putting your money into student property.

While the standard buy to let investment will return yields of between five and seven per cent typically, according to a Telegraph report, the student property sector can bring investors up to ten per cent yields in more high demand areas, such as the north-east and north-west of England.

3. You can benefit from a fully managed asset

Student property investment is ideal for those who want to be able to put their money into property, but who either have little experience or little time in terms of being able to deal with their investments.

One of the big advantages of investing in student accommodation with a company like Experience Invest is that when you purchase, you can get much of the day-to-day work done for you. Low contact tenancies mean that you need not worry about finding tenants, dealing with rent payments or even maintenance. This is all carried out on your behalf, meaning you can enjoy a low stress, high-reward buy to let investment not commonly seen in the mainstream.

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Whilst Experience Invest has an office in Hong Kong, the company and individuals representing Experience Invest are not licensed to and do not deal with any property situated in Hong Kong. Experience Invest is only authorised to market and to sell properties which are based in the UK.

Whilst Experience Invest has an office in Hong Kong, the company and individuals representing Experience Invest are not licensed to and do not deal with any property situated in Hong Kong. Experience Invest is only authorised to market and to sell properties which are based in the UK.